Harland & Wolff appoints interim chair, non-exec director

12th Aug 2024 15:14

(Sharecast News) - Harland & Wolff announced the formal appointment of two new members to its board on Monday, with Russell Downs and Alan Fort appointed with immediate effect.

The company, whose shares were currently suspended from trading, said the pair would bring extensive experience in finance, restructuring, and performance improvement during a critical period.

It said Downs was joining as interim executive chairman.

With a 30-year career at PwC, where he most recently served as a partner, Downs is experienced in advising businesses across various industries.

He is also the founder of boutique advisory firm Armada Advisers, and serves as an executive director at Merry Hill Shopping Centre.

Downs would lead the Harland & Wolff board as the company aimed to complete a recapitalisation to establish a sustainable financial foundation.

Alan Fort was meanwhile appointed as a non-executive director.

Harland & Wolff said Fort has a strong background in performance improvement and board-level experience, including his current role as a non-executive director at steel manufacturer Celsa UK Group, where he previously served as chief restructuring officer.

The company also updated the market on its financial situation, after announcing on 19 July that it was exploring strategic options after being informed that its application for the government's EDG facility would not proceed.

To address short-term liquidity needs, ikt secured an additional $25m from its existing lender Riverstone on 1 August.

Despite its financial difficulties, Harland & Wolff said it remained committed to its strategy of scaling, diversifying, and investing in its asset base to support large-scale contracts, including the Fleet Solid Support (FSS) programme.

The company said it was actively engaged in discussions with its customers to determine the best path forward for delivering on these projects.

It also appointed Rothschild & Co as its financial adviser to assess strategic options, with the aim of maximising stakeholder value and preserving core operations across its delivery centres in Belfast, Appledore, Methil, and Arnish.

However, the company had paused work on its 2023 financial accounts due to uncertainties about its ability to continue as a going concern, with its shares remaining suspended.

"We remain focussed on working with interested parties and key stakeholders to ensure that we can navigate through this uncertainty preserving the underlying value in the yards and the FSS contract for its employees and other stakeholders," Russell Downs commented.

Reporting by Josh White for Sharecast.com.